President Obama’s Home Affordable Modification Program

Do-It-Yourself Kit

What is it? Announced on March 4, 2009, President Obama has invested $75 billion in helping homeowners avoid foreclosure. For approximately 3 to 4 million families, he is proposing a government subsidy to your lender in exchange for lowering your monthly mortgage payment to an affordable level.

How does it work? The Plan works by incentivizing your lender to

reduce the monthly mortgage payment (including principal, interest, monthly property tax and homeowner’s insurance escrow, and condo assessments) on 1st mortgages to 31% of the household’s gross monthly income. If you are approved, you will be placed on a 3-month trial plan. If you make each payment on time, the modification will be extended for 5 years. At the end of the 5 years, your interest rate can go up 1% per year until it reaches the market rate at the time you got the modification (@ 4.75% if you got the modification today). A few other terms apply:

1) Your taxes and insurance will be escrowed; 2) Accrued interest and lender expenses (attorney fees, etc.) will be

added to your outstanding principal balance, all late fees will be waived;

3) There is no fee for getting the modification; 4) Pending foreclosures must be postponed during the evaluation and

trial period; and 5) If, after the modification, your mortgage payment and other credit

report debt exceed 55% of your gross monthly income, you must agree to credit counseling with a HUD-Certified Housing Counseling Agency.

How Will My Payments Get Lowered? Your lender can lower your mortgage payment to 31% of gross monthly income by taking 3 steps. Remember that your lender will only do what is necessary to make your payment equal to 31% of gross monthly income and no more.

1) lowering your interest rate to as low as 2%; 2) extending the length of the loan to 40 years; and

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3) Reducing or deferring principal if you have substantial negative equity.

Do I qualify? To determine if you qualify under the Plan, see if you meet all of the following criteria:

1) Owner-occupied 1-4 unit property; 2) Home 1st mortgage loan is under $729,750 (1 unit), $934,200 (2

units), $1,129,250 (3 units), $1,403,400 (4 units); 3) Loan originated before January 1, 2009; 4) Homeowner has income that will support monthly mortgage payments

at 31% of gross monthly income; 5) Loan is not FHA or VA insured; 6) You have a Hardship such as a loss of income, change in

circumstances (such as divorce), or increase in expenses; and 7) Your current 1st mortgage PITIA payment is over 31% of your gross

monthly income

Next, to determine if you have enough income to support the monthly mortgage payment at 31% of gross monthly income, do the following basic math: Step 1: Calculate 31% of GMI (Gross Monthly Income) $___________________ Step 2: Subtract monthly property tax payments $___________________ Step 3: Subtract monthly homeowner’s insurance payment $___________________ Step 4: This equals available funds for P&I Payment $___________________ Step 5: Principal balance divided by 1,000 * 3.7 $___________________ (this equals the potential P&I payment at 2%)

If Line 5 is equal to or less than Line 4, you should qualify.

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How Do I Apply? Application for the Plan is free but you must take several steps. While this may seem like a lot of work, your home is your most important investment and you should do everything to save it from foreclosure.

1) Sign the IRS 4506-T Form enclosed with this How-To Kit. This is an authorization for IRS to send your lender a copy of your tax return;

2) Gather the two most recent pay stubs for each person on the loan (use all sources of income including social security, pension, alimony, etc.);

3) Gather statements from: A. Mortgage Insurance Premiums; B. All installment debt payments (i.e., student loans, car payments); C. Minimum credit card payments; D. Car Lease payments; E. Alimony or child support payments; and/or F. Information on any other properties you own;

4) Fill out the Hardship Affidavit included in this How-To Kit. The Affidavit will explain to your lender why you need help;

5) Call your lender and ask to be sent an application form for President Obama’s Home Affordable Loan Modification Program;

6) Fill out the Application completely; and 7) Fax or mail the completed Application along with all of your

supporting documentation to your lender along with the enclosed Cover Letter.

INSTRUCTIONS TO PRINTERSFORM 4506, PAGE 1 of 2MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES. PRINTS: HEAD to HEADPAPER: WHITE WRITING, SUB. 20. INK: BLACKFLAT SIZE: 216 mm (81⁄ 2 ") 3 279 mm (11")PERFORATE: NONE

4506-T Form Request for Transcript of Tax Return

OMB No. 1545-1872

(Rev. January 2008)

© Do not sign this form unless all applicable lines have been completed.Read the instructions on page 2.

Department of the TreasuryInternal Revenue Service

© Request may be rejected if the form is incomplete, illegible, or any requiredline was blank at the time of signature.

First social security number on tax return oremployer identification number (see instructions)

1a

1b

Name shown on tax return. If a joint return, enter the name shown first.

If a joint return, enter spouse’s name shown on tax return

2a

Second social security number if joint tax return

2b

Current name, address (including apt., room, or suite no.), city, state, and ZIP code

3

Form 4506-T (Rev. 1-2008) Cat. No. 37667N

For Privacy Act and Paperwork Reduction Act Notice, see page 2.

7 I.R.S. SPECIFICATIONS TO BE REMOVED BEFORE PRINTING

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

TLS, have youtransmitted all R text files for this cycle update?

Date

Action

Revised proofsrequested

Date

Signature

O.K. to print

Previous address shown on the last return filed if different from line 3

4

Caution: DO NOT SIGN this form if a third party requires you to complete Form 4506-T, and lines 6 and 9 are blank.

If the transcript or tax information is to be mailed to a third party (such as a mortgage company), enter the third party’s name, address,and telephone number. The IRS has no control over what the third party does with the tax information.

5

6

9

Year or period requested. Enter the ending date of the year or period, using the mm/dd/yyyy format. If you are requesting more than fouryears or periods, you must attach another Form 4506-T. For requests relating to quarterly tax returns, such as Form 941, you must entereach quarter or tax period separately.

Telephone number of taxpayer online 1a or 2a

SignHere

( ) Date Signature (see instructions)

Title (if line 1a above is a corporation, partnership, estate, or trust)

© ©

Signature of taxpayer(s). I declare that I am either the taxpayer whose name is shown on line 1a or 2a, or a person authorized to obtain the taxinformation requested. If the request applies to a joint return, either husband or wife must sign. If signed by a corporate officer, partner,guardian, tax matters partner, executor, receiver, administrator, trustee, or party other than the taxpayer, I certify that I have the authority toexecute Form 4506-T on behalf of the taxpayer.

Spouse’s signature © Date

Tip: Use Form 4506-T to order a transcript or other return information free of charge. See the product list below. You can also call 1-800-829-1040 toorder a transcript. If you need a copy of your return, use Form 4506, Request for Copy of Tax Return. There is a fee to get a copy of your return.

/ /

/ /

/ /

/ /

Transcript requested. Enter the tax form number here (1040, 1065, 1120, etc.) and check the appropriate box below. Enter only one tax

form number per request. ©

a

b

c

7

8

Return Transcript, which includes most of the line items of a tax return as filed with the IRS. Transcripts are only available for the following returns: Form 1040 series, Form 1065, Form 1120, Form 1120A, Form 1120H, Form 1120L, and Form 1120S.Return transcripts are available for the current year and returns processed during the prior 3 processing years. Most requestswill be processed within 10 business days

Account Transcript, which contains information on the financial status of the account, such as payments made on the account, penaltyassessments, and adjustments made by you or the IRS after the return was filed. Return information is limited to items such as tax liabilityand estimated tax payments. Account transcripts are available for most returns. Most requests will be processed within 30 calendar days

Record of Account, which is a combination of line item information and later adjustments to the account. Available for current yearand 3 prior tax years. Most requests will be processed within 30 calendar days

Verification of Nonfiling, which is proof from the IRS that you did not file a return for the year. Most requests will be processed within 10 business days

Form W-2, Form 1099 series, Form 1098 series, or Form 5498 series transcript. The IRS can provide a transcript that includes data fromthese information returns. State or local information is not included with the Form W-2 information. The IRS may be able to provide this transcript information for up to 10 years. Information for the current year is generally not available until the year after it is filed with the IRS. For example, W-2 information for 2006, filed in 2007, will not be available from the IRS until 2008. If you need W-2 information for retirement purposes, youshould contact the Social Security Administration at 1-800-772-1213. Most requests will be processed within 45 days

Caution: If you need a copy of Form W-2 or Form 1099, you should first contact the payer. To get a copy of the Form W-2 or Form 1099filed with your return, you must use Form 4506 and request a copy of your return, which includes all attachments.

INSTRUCTIONS TO PRINTERSFORM 4506-T, PAGE 2 of 2MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES. PRINTS: HEAD to HEADPAPER: WHITE WRITING, SUB. 20. INK: BLACKFLAT SIZE: 216 mm (81⁄ 2 ") 3 279 mm (11")PERFORATE: NONE

Page 2 Form 4506-T (Rev. 1-2008)

Mail or fax to the“Internal RevenueService” at:

If you filed anindividual returnand lived in: RAIVS Team

Stop 679Andover, MA 05501

978-247-9255

District of Columbia,Maine, Maryland,Massachusetts,New Hampshire,New York,Vermont

RAIVS TeamP.O. Box 47-421Stop 91Doraville, GA 30362

770-455-2335

Alabama, Delaware,Florida, Georgia,North Carolina, Rhode Island,South Carolina,Virginia

RAIVS Team Stop 6716 AUSC Austin, TX 73301

Kentucky, Louisiana,Mississippi,Tennessee, Texas, aforeign country, orA.P.O. or F.P.O.address

If you have comments concerning theaccuracy of these time estimates orsuggestions for making Form 4506-Tsimpler, we would be happy to hear fromyou. You can write to the Internal RevenueService, Tax Products CoordinatingCommittee, SE:W:CAR:MP:T:T:SP, 1111Constitution Ave. NW, IR-6526,Washington, DC 20224. Do not send theform to this address. Instead, see Where tofile on this page.

Privacy Act and Paperwork ReductionAct Notice. We ask for the information onthis form to establish your right to gainaccess to the requested tax informationunder the Internal Revenue Code. We needthis information to properly identify the taxinformation and respond to your request.Sections 6103 and 6109 require you toprovide this information, including yourSSN or EIN. If you do not provide thisinformation, we may not be able toprocess your request. Providing false orfraudulent information may subject you topenalties.

The time needed to complete and fileForm 4506-T will vary depending onindividual circumstances. The estimatedaverage time is: Learning about the lawor the form, 10 min.; Preparing the form,12 min.; and Copying, assembling, andsending the form to the IRS, 20 min.

7 I.R.S. SPECIFICATIONS TO BE REMOVED BEFORE PRINTING

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

You are not required to provide theinformation requested on a form that issubject to the Paperwork Reduction Actunless the form displays a valid OMBcontrol number. Books or records relatingto a form or its instructions must beretained as long as their contents maybecome material in the administration ofany Internal Revenue law. Generally, taxreturns and return information areconfidential, as required by section 6103.

General Instructions Purpose of form. Use Form 4506-T torequest tax return information. You canalso designate a third party to receive theinformation. See line 5.

Signature and date. Form 4506-T must besigned and dated by the taxpayer listed online 1a or 2a. If you completed line 5requesting the information be sent to athird party, the IRS must receive Form4506-T within 60 days of the date signedby the taxpayer or it will be rejected. Individuals. Transcripts of jointly filedtax returns may be furnished to eitherspouse. Only one signature is required.Sign Form 4506-T exactly as your nameappeared on the original return. If youchanged your name, also sign your currentname. Corporations. Generally, Form 4506-Tcan be signed by: (1) an officer havinglegal authority to bind the corporation, (2)any person designated by the board ofdirectors or other governing body, or (3)any officer or employee on written requestby any principal officer and attested to bythe secretary or other officer.

Partnerships. Generally, Form 4506-Tcan be signed by any person who was amember of the partnership during any partof the tax period requested on line 9. All others. See Internal Revenue Codesection 6103(e) if the taxpayer has died, isinsolvent, is a dissolved corporation, or if atrustee, guardian, executor, receiver, oradministrator is acting for the taxpayer. Where to file. Mail or fax Form 4506-T to

the address below for the state you livedin, or the state your business was in, whenthat return was filed. There are twoaddress charts: one for individualtranscripts (Form 1040 series and FormW-2) and one for all other transcripts. If you are requesting more than onetranscript or other product and the chartbelow shows two different RAIVS teams,send your request to the team based onthe address of your most recent return.

Chart for individualtranscripts (Form 1040 seriesand Form W-2)

RAIVS TeamStop 37106 Fresno, CA 93888

559-456-5876

Alaska, Arizona,California, Colorado,Hawaii, Idaho, Iowa,Kansas, Minnesota,Montana, Nebraska,Nevada, New Mexico,North Dakota,Oklahoma, Oregon,South Dakota, Utah,Washington,Wisconsin, Wyoming RAIVS Team

Stop 6705–B41Kansas City, MO 64999

816-292-6102

Arkansas,Connecticut, Illinois,Indiana, Michigan,Missouri, NewJersey, Ohio,Pennsylvania, West Virginia

Mail or fax to the“Internal RevenueService” at:

RAIVS Team P.O. Box 9941Mail Stop 6734 Ogden, UT 84409

Alabama, Alaska,Arizona, Arkansas,California, Colorado,Florida, Georgia,Hawaii, Idaho, Iowa,Kansas, Louisiana,Minnesota,Mississippi,Missouri, Montana,Nebraska, Nevada,New Mexico, North Dakota,Oklahoma, Oregon, South Dakota,Tennessee, Texas,Utah, Washington,Wyoming, a foreigncountry, or A.P.O. orF.P.O. address Connecticut,Delaware, District ofColumbia, Illinois,Indiana, Kentucky,Maine, Maryland,Massachusetts,Michigan, NewHampshire, NewJersey, New York,North Carolina,Ohio, Pennsylvania,Rhode Island, SouthCarolina, Vermont,Virginia, WestVirginia, Wisconsin

RAIVS TeamP.O. Box 145500Stop 2800 F Cincinnati, OH 45250

859-669-3592

Chart for all other transcripts

Documentation. For entities other thanindividuals, you must attach theauthorization document. For example, thiscould be the letter from the principal officerauthorizing an employee of the corporationor the Letters Testamentary authorizing anindividual to act for an estate.

Line 1b. Enter your employer identificationnumber (EIN) if your request relates to abusiness return. Otherwise, enter the firstsocial security number (SSN) shown on thereturn. For example, if you are requestingForm 1040 that includes Schedule C(Form 1040), enter your SSN.

Routine uses of this information includegiving it to the Department of Justice forcivil and criminal litigation, and cities,states, and the District of Columbia for usein administering their tax laws. We mayalso disclose this information to othercountries under a tax treaty, to federal andstate agencies to enforce federal nontaxcriminal laws, or to federal lawenforcement and intelligence agencies tocombat terrorism.

Tip. Use Form 4506, Request for Copy ofTax Return, to request copies of taxreturns.

Line 6. Enter only one tax form number perrequest.

If you lived in oryour businesswas in:

512-460-2272

801-620-6922

Note. You can also call 1-800-829-1040 torequest a transcript or get moreinformation.

Be Prepared To Fix Your Mortgage

REQUIRED DOCUMENTS CHECKLIST Homeowners should provide two copies of these documents for all borrowers on the loan:

PROOF OF INCOME (for all borrowers on the loan) ¨ Most recent tax return

¨ Pay stubs (2 most recent)

¨ If you receive alimony or child support, please bring proof, such as copy of judgment letter

¨ If you receive Social Security income, please bring proof, such as an award letter

¨ If you receive income from other sources, please bring proof/documentation

¨ If you are self employed, please bring documentation of income, such as profit/loss

statement, etc.

MORTGAGE INFORMATION ¨ Most recent mortgage statement (First Mortgage) ¨ If you have a second mortgage, please bring most recent mortgage statement

SAVINGS/ASSETS ¨ Bank statements (last 2 months)

EXPENSES ¨ Account balances and monthly payments on other debts including: credit cards,

student/personal loans, auto loans, child support, alimony, property taxes, and homeowner association/condo fees.

FIX YOUR MORTGAGE Overview

• On May 2 from 9 AM to 2 PM the City is proud to host the “Fix Your Mortgage” Event at the Chicago Police Department Training Academy (Police Academy) at 1300 W. Jackson.

• The event is designed to help Chicagoans determine if they are eligible for help

under the federal government’s recently-announced foreclosure assistance plan and to ensure they get into affordable, sustainable fixed-rate mortgages.

• This event is designed to help residents get the assistance they need in order to

stay in their homes. There is nothing embarrassing about needing to use these services. These programs are designed to help folks stay in their homes and the City is proud to help facilitate that.

• The event is held in partnership with Neighborhood Housing Services of Chicago;

Attorneys' Title Guaranty Fund; and The John D. and Catherine T. MacArthur Foundation.

• It is important that residents bring required materials to the event. They are:

o Information about the monthly gross (before tax) income of all the borrowers on your loan, including recent pay stubs if you receive them or documentation of income you receive from other sources.

o Your most recent income tax return.

o Information about any second mortgage on the house.

o Account balances and monthly payments on all your other debts such as student loans and car loans.

o Account balances and minimum monthly payments due on all of your credit cards.

• At the event, HUD certified counselors and pro-bono real estate attorneys will

review paperwork and complete a list to determine if the borrower qualifies for assistance under the plan.

• President Obama’s Homeowner and Stability Plan, known as Making Home

Affordable was announced earlier this month. Website: www.makinghomeaffordable.gov

• The program has two primary parts: a $75 billion Loan Modification Program that is expected to help four million homeowners currently in or at-risk of foreclosure modify their loans; and $200 billion for re-financing, allowing homeowners who were previously unable to refinance their mortgage because the value of their home has dropped to do so. This event will focus only on the part of the Obama plan that deals with modifying loan agreements.

• Any bank that receives federal money under the Treasury Department’s $700

billion financial rescue program is required to participate.

• There are five more in the City’s series of Borrower Outreach Days between April and December. The city has sponsored14 of these events since 2007 and provided help to more than 3,200 homeowners.

Este Preparado Para Arreglar Su Hipoteca

LISTA DE DOCUMENTOS REQUERIDOS Dueño de casa debe traer dos copias de estos documentos para todos los prestatarios en el

préstamo:

PRUEBA DE INGRESOS (para todos prestatarios en el préstamo) ¨ Impuestos federales más recientes

¨ Talones de cheque (los 2 mas recientes)

¨ I Si usted recibe pensión o manutención de hijos, favor de traer prueba, como copia de

carta de orden judicial

¨ Si usted recibe los ingresos de seguro social, favor de traer prueba, como una carta de

otorgo

¨ Si usted recibe cualquier otro ingreso, favor de traer prueba/documentación

¨ Si usted tiene su propio negocio, favor de traer documentación de ingresos, declaración de

ganancias-perdidas, etc.

INFORMACION DE HIPOTECA ¨ Estado de cuenta mas reciente de su hipoteca (Primera Hipoteca) ¨ Si tiene una segunda hipoteca, favor de traer estado de cuenta mas reciente

AHORROS/BIENES ¨ Estados de cuentas bancaria (últimos 2 meses)

GASTOS ¨ Saldos de cuentas y pagos mensuales en otras deudas incluyendo: tarjetas de crédito,

prestamos estudiantiles o personales, pago de auto, manutención de hijos, pensión, impuestos sobre la propiedad y honorarios de asociación/condominio